In this lecture, we will begin with a general overview of supply and demand dynamics that are applicable across various markets. Next, we will introduce the characteristics that define a perfectly competitive market and discuss the arguments suggesting that certain shipping markets exhibit these traits.
In the second portion of our lecture, we will explore how supply and demand dynamics influence freight rates. We'll also examine how the shipping industry adjusts to over-supply and under-supply in the short run and long run to reach equilibrium.
Finally, we will dedicate time to analyze the relationship between freight rates and supply and demand metrics, drawing upon real data.